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DEMAND SIDE MANAGEMENT
By
Surya muttamsetty
CONTENTS
WHAT IS DSM
NEED FOR DSM
IMPLEMENTATION OF DSM
BENEFITS OF DSM
PROBLEMS OF DSM
FUTURE
WHAT IS DSM
“Demand Side Management” is the
modification of consumer’s demand of
electricity through various methods such as
financial incentives and consumer
education
Usually the goal of DSM is to encourage the
consumers to use less energy during peak
hours or to move the time of energy use to
the off-peak hours
WHAT IS DSM …..(CNTD)
DSM is universal and does not only apply
to utilities, electricity or monopolies
IN SHORTLY, DSM = Large-Scale
Deployment of Energy Efficient
Equipment by use of specially designed
Programmes
THE ISSUES
Load level
a wasteful demand requires too much supply for
the specific needs
Load shape
high peaks,
little reserve capacity,
bottlenecks in transmission and distribution
FROM THE GRAPH
The peak demand of 225 KW is there for an
average of 12 hours in a day
The base demand is 125 KW, which is much
less than the peak demand of 4,300 MW
To meet the extra demand utility has to
arrange additional installed capacity or
purchase power at high rate
Cntnd…..
Thus DSM will always try to encourage
consumers to:
Use less energy during Peak hours (Peak
Clipping)
Shift energy use to off peak hours (Valley
Filling)
NEED FOR DSM
Increasing energy requirement
Increasing threat of climate change and other
environmental considerations
Energy security
Lack of other supply options
Huge scope for energy efficiency measures
NEED FOR DSM ….(CNTD)
Saving 1 unit of electricity at consumer end
avoids nearly 2.5 times of capacity addition
1 MW capacity addition of thermal power
requires Rs 6 crores for installation and
another Rs 3 crores for Transmission and
Distribution
IMPLEMETATION OF DSM
There are 3 methods to implement dsm
1. ENERGY EFFIENCY
2. DEMAND RESPONSE
3. DYNAMIC DEMAND
Energy Efficiency:
Using less power to perform the same tasks
Demand Response:
Demand Response includes all intentional modifications to
consumption patterns of electricity of enduser customers that are
intended to alter the timing, level of instantaneous demand, or the
total electricity consumption
Dynamic Demand:
The concept is that by monitoring the power factor of the power
grid, as well as their own control parameters, individual,
intermittent loads would switch on or off at optimal moments to
balance the overall system load with generation, reducing critical
power mismatches
STEPS TO BE FOLLOWED
To charge higher prices during Peak Hours
Improving the efficiency of various end uses by
using energy efficient appliances, better house
keeping and reducing energy leakages. This is
important for agriculture where energy efficiency
is very low (30-50%)
Promoting use of Energy Efficient Technologies
and addressing Aggregate Technical and
Commercial (AT&C) Losses
CHANGE IN THE LOAD SHAPE
Adapts the load to the capacity of the system
Before
After
Benefits of Demand Side Management
Customer Benefits Utility Benefits Societal Benefits
Satisfy electricity
demands Lower cost of service
Reduce environmental
degradation
Reduce / stabilize costs
or electricity bill
Improve operating
efficiency,
Flexibility
Conserve resources
Maintain/improve
lifestyle and
productivity
Improve customer
service
Protect global
environment
15
PROBLEMS OF DSM
It might result in higher utility costs for
consumers and less profit for utilities.
Another problem of DSM is privacy: The
consumers have to provide some
information about their usage of electricity
to their electricity company.
Dissatisfaction may arise among the
consumers
FINAL THOUGHT….
DSM leads to,
i. Energy efficiency
ii. Industrial development
iii. Energy security

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Demand side management,

  • 2. CONTENTS WHAT IS DSM NEED FOR DSM IMPLEMENTATION OF DSM BENEFITS OF DSM PROBLEMS OF DSM FUTURE
  • 3. WHAT IS DSM “Demand Side Management” is the modification of consumer’s demand of electricity through various methods such as financial incentives and consumer education Usually the goal of DSM is to encourage the consumers to use less energy during peak hours or to move the time of energy use to the off-peak hours
  • 4. WHAT IS DSM …..(CNTD) DSM is universal and does not only apply to utilities, electricity or monopolies IN SHORTLY, DSM = Large-Scale Deployment of Energy Efficient Equipment by use of specially designed Programmes
  • 5. THE ISSUES Load level a wasteful demand requires too much supply for the specific needs Load shape high peaks, little reserve capacity, bottlenecks in transmission and distribution
  • 6.
  • 7. FROM THE GRAPH The peak demand of 225 KW is there for an average of 12 hours in a day The base demand is 125 KW, which is much less than the peak demand of 4,300 MW To meet the extra demand utility has to arrange additional installed capacity or purchase power at high rate
  • 8. Cntnd….. Thus DSM will always try to encourage consumers to: Use less energy during Peak hours (Peak Clipping) Shift energy use to off peak hours (Valley Filling)
  • 9. NEED FOR DSM Increasing energy requirement Increasing threat of climate change and other environmental considerations Energy security Lack of other supply options Huge scope for energy efficiency measures
  • 10. NEED FOR DSM ….(CNTD) Saving 1 unit of electricity at consumer end avoids nearly 2.5 times of capacity addition 1 MW capacity addition of thermal power requires Rs 6 crores for installation and another Rs 3 crores for Transmission and Distribution
  • 11. IMPLEMETATION OF DSM There are 3 methods to implement dsm 1. ENERGY EFFIENCY 2. DEMAND RESPONSE 3. DYNAMIC DEMAND
  • 12. Energy Efficiency: Using less power to perform the same tasks Demand Response: Demand Response includes all intentional modifications to consumption patterns of electricity of enduser customers that are intended to alter the timing, level of instantaneous demand, or the total electricity consumption Dynamic Demand: The concept is that by monitoring the power factor of the power grid, as well as their own control parameters, individual, intermittent loads would switch on or off at optimal moments to balance the overall system load with generation, reducing critical power mismatches
  • 13. STEPS TO BE FOLLOWED To charge higher prices during Peak Hours Improving the efficiency of various end uses by using energy efficient appliances, better house keeping and reducing energy leakages. This is important for agriculture where energy efficiency is very low (30-50%) Promoting use of Energy Efficient Technologies and addressing Aggregate Technical and Commercial (AT&C) Losses
  • 14. CHANGE IN THE LOAD SHAPE Adapts the load to the capacity of the system Before After
  • 15. Benefits of Demand Side Management Customer Benefits Utility Benefits Societal Benefits Satisfy electricity demands Lower cost of service Reduce environmental degradation Reduce / stabilize costs or electricity bill Improve operating efficiency, Flexibility Conserve resources Maintain/improve lifestyle and productivity Improve customer service Protect global environment 15
  • 16.
  • 17. PROBLEMS OF DSM It might result in higher utility costs for consumers and less profit for utilities. Another problem of DSM is privacy: The consumers have to provide some information about their usage of electricity to their electricity company. Dissatisfaction may arise among the consumers
  • 18. FINAL THOUGHT…. DSM leads to, i. Energy efficiency ii. Industrial development iii. Energy security